**GAO-03-375R**                      Jan 02, 2003                  

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## Highlights

GAO reviewed the Department of Labor's (DOL) Office of Workers' Compensation Programs' new rule on claims for compensation under the Energy Employees Occupational Illness Compensation Act of 2000. GAO found that (1) the act would provide lump-sum payments and medical benefits to covered employees of the Department of Energy, its predecessor agencies, and certain of its vendors, contractors, and subcontractors and, where applicable, survivors of such employees; (2) the act would provide for the payment of smaller lump-sum payments and medical benefits to individuals already found eligible for benefits under the Radiation Exposure Compensation Act and, where applicable, their survivors; and (3) DOL complied with applicable requirements in promulgating the rule.

##  Department of Labor, Office of Workers' Compensation Programs: Performance of Functions Under This Chapter; Claims for Compensation Under the Energy Employees Occupational IllnessCompensation Program Act of 2000, as Amended, GAO-03-375R, January 2, 2003

B-291812January 2, 2003The Honorable Edward M. Kennedy     Chairman     The Honorable Judd Gregg     Ranking Minority Member     Committee on Health, Education, Labor, and Pensions     United States SenateThe Honorable F. James Sensenbrenner     Chairman     The Honorable John Conyers, Jr.     Ranking Minority Member     Committee on the Judiciary     House of Representatives     Subject:*Department of Labor, Office of Workers' Compensation Programs: Performance of Functions Under This Chapter; Claims for Compensation    Under the Energy Employees Occupational Illness Compensation Program Act of 2000, as Amended*Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Labor    (DOL), Office of Workers' Compensation Programs, entitled Performance of Functions Under This Chapter; Claims for Compensation Under the Energy Employees Occupational Illness Compensation    Program Act of 2000, as Amended (RIN: 1215-AB32).  We received the rule on December 26, 2002.  It was published in the Federal Register as a final rule on December 26,    2002.  67 Fed. Reg. 78874.     The final rule governs the administration of the Energy Employees Occupational Illness Compensation Program Act (EEOICPA).  It provides lump-sum payments and medical benefits to covered    employees of the Department of Energy, its predecessor agencies, and certain of its vendors, contractors, and subcontractors and, where applicable, survivors of such employees.  The EEOICPA    also provides for the payment of smaller lump-sum payments and medical benefits to individuals already found eligible for benefits under section 5 of the Radiation Exposure Compensation Act and,    where applicable, their survivors.     Enclosed is our assessment of the DOL's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.  Our review indicates that    the DOL complied with the applicable requirements.     If you have any questions about this report, please contact James W. Vickers, Assistant General Counsel, at (202) 512-8210.  The official responsible for GAO evaluation work relating to the    subject matter of the rule is Cindy Fagnoni, Managing Director, Education, Workforce, and Income Security.  Ms. Fagnoni can be reached at (202) 512-7215.     Kathleen E. Wannisky     Managing Associate General Counsel     Enclosurecc: Shelby Hallmark     Director, Office of Workers'       Compensation Programs     Department of Labor            ENCLOSURE     ANALYSIS UNDER 5 U.S.C.  801(a)(1)(B)(i)-(iv) OF A MAJOR RULE     ISSUED BY THE     DEPARTMENT OF LABOR,     OFFICE OF WORKERS' COMPENSATION PROGRAM     ENTITLED     "PERFORMANCE OF FUNCTIONS UNDER THIS CHAPTER;     CLAIMS FOR COMPENSATION UNDER THE     ENERGY EMPLOYEES OCCUPATIONAL ILLNESS     COMPENSATION PROGRAM ACT OF 2000, AS AMENDED"     (RIN: 1215-AB32)(i) Cost-benefit analysis     The Department of Labor estimates that the costs of the benefits under the final rule and its administrative costs (in millions of dollars) are as follows:Fiscal YearBenefitsAdministration               2002                                    $769                              $136               2003                                      758                                   100               2004                                      578                                     55               2005                                      353                                     50               2006                                      250                                     33(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C.  603-605, 607, and 609     The Assistant Secretary for Employment Standards has certified that the final rule will not have a significant economic impact on a substantial number of small entities.(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.  1532-1535     The final rule does not contain either an intergovernmental or private sector mandate, as defined in title II, of more than $100 million in any one year.(iv) Other relevant information or requirements under acts and executive orders     Administrative Procedure Act, 5 U.S.C.  551 etseq.     The final rule follows the publication of an interim final rule with a request for comments on May 25, 2001 (66 Fed. Reg. 28948).  The comments received in response are discussed in the    preamble to the final rule.     Paperwork Reduction Act, 44 U.S.C.  3501-3520     The final rule contains information collections that are subject to review and approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act.  Most of the    collections were submitted and approved in connection with the earlier interim final rule.  However, there are three new information collections contained in the final rule, which are being    submitted to OMB for approval.  Public comments are requested on the information collections.     Statutory authorization for the rule     The final rule is promulgated pursuant to the authority contained in section 3611 of the Energy Employees Occupational Illness Compensation Program Act (Public Law 106-398, October 30, 2000) and    Executive Order No. 13179.     Executive Order No. 12866     The final rule was reviewed by OMB and found to be an economically significant regulatory action.     Executive Order No. 13132 (Federalism)     DOL has reviewed the final rule under the order and found it does not have federalism implications.

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